Blog – United States Manufacturing Sector Analysis and Commentary – March 2023 Summary: U.S. manufacturing-sector orders fell again in February, driven again by a decline in transportation equipment and manufactured durable goods orders, albeit at a slower pace than in January. New orders for manufactured goods fell 0.7% in February on month to $536.4 billion, compared with a revised 2.1% fall in January, data from the Commerce Department showed Tuesday. The reading is a touch weaker than the 0.6% decrease expected by economists in a poll by The Wall Street Journal. The fall was driven by a 2.8% drop in orders for transportation equipment, the data showed. Nondefense aircraft and parts orders once again dropped, by 6.6% in February, after a 56.3% dip in January, although the figures came after a hefty rise at the end of 2022. Even excluding transportation, total orders still fell 0.3%, a swing from a 0.8% rise in January. New orders for manufactured durable goods--those meant to last at least three years--fell 1.0% in February, in line with preliminary estimate and after a 5.0% increase in December. New orders for manufactured nondurable goods tumbled 0.4%. Surveys to manufacturers suggest that despite recent moderation of the fall in orders, the pace of declines could accelerate again. ISM purchasing managers index showed Monday that new orders at U.S. manufacturers contracted again in March, reaching its lowest level since May 2020. Source - https://www.marketscreener.com/news/latest/U-S-Factory-Orders-Fell-Again-in-February-Though-at-Slower-Pace--43426768/ PMI has fallen below 50 - https://www.prnewswire.com/news-releases/manufacturing-pmi-at-46-3-march-2023-manufacturing-ism-report-on-business-301787309.html United States factory orders decline in February 2023 - https://www.marketscreener.com/news/latest/U-S-Factory-Orders-Fell-Again-in-February-Though-at-Slower-Pace--43426768/ Nearshoring to Mexico continues to pick up steam. https://www.reuters.com/world/americas/nearshoring-bets-boost-mexican-real-estate-transport-shares-2023-04-04/ Producer price index decline in February 2023 - https://www.reuters.com/markets/us/us-producer-prices-unexpectedly-fall-february-2023-03-15/ United States continues to look at better ways to manage supply chains like critical metals - https://www.barrons.com/amp/articles/niocorp-achieves-processing-breakthrough-in-demonstration-plant-testing-of-niobium-and-titanium-production-19e70748 Broadband spending is expected to decline in 2023 - https://www.benton.org/headlines/wireless-capital-expenditures-north-america-poised-plunge-10-20-percent-2023 Market volatility continues to drive asset management decisions - https://www.usbank.com/investing/financial-perspectives/market-news/economic-news.html Government continues to address climate change with more spending in the green and clean economy - https://www.weforum.org/agenda/2023/04/clean-energy-government-investment-spending/

1. P A U L Y O U N G C P A C G A
A P R I L 7 , 2 0 2 3
MANUFACTURING – USA – WHAT
IS NEXT

2. Paul Young - Bio
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – ESG and Sustainability Reporting &
Policy Analysis
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: paul.young_cga@outlook.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/

3. Agenda
• USA Manufacturing / Shipments for August 2021
• USA PMI Index
• Reshoring / Manufacturing
• Steel
• AG Equipment
• Class 8 Trucks
• Oil and Energy
• Analytics / Manufacturing
• Climate Change / Supply Chain

4. USA Manufacturing / Shipments

5. USA Manufacturing / Shipments

6. PMI Index

7. Steel

8. North American Equipment Sales
Source - https://www.aem.org/Market-Data/

9. Key Commodity Prices (BMO)
Source – BMO Economics
PRESENTATION TITLE 2/11/20XX 9

10. Commodity
Prices
SOURCE -
HTTPS://WWW.WORLDB
ANK.ORG/EN/RESEARCH/
COMMODITY-MARKETS
Key Commodities

11. Class 8 Truck Sales
S o u r c e – T h e T r u c k e r a n d h t t p s : / / w w w . t t n e w s . c o m / a r t i c l e s / s e p t e m b e r - c l a s s - 8 - s a l e s - h i g h e s t -
y e a r o r h t t p s : / / w w w . t t n e w s . c o m / a r t i c l e s / c l a s s - 8 - s a l e s - n o v e m b e r - s l i p o r
h t t p s : / / w w w . t t n e w s . c o m / a r t i c l e s / d e c e m b e r - c l a s s - 8 - s a l e s - r e a c h - h i g h - m a r k - 2 0 2 0 - d o w n - 7 4 -
c o m p a r e d - 2 0 1 9

12. USA Oil

13. Durable Goods

14. Reshoring of Manufacturing
Source - https://www.ttnews.com/articles/2020-events-force-manufacturers-rethink-reshoring-operation-plans

15. Supply Chain
Companies worldwide are adapting to the pandemic by shifting production closer to customers, but such
efforts to make supply chains more resilient also complicate tax obligations, EY said.
“There’s a lot of benefits that can be obtained” by overhauling global supply chains, according to Craig
Hillier, international tax and transactions services leader at EY. “But there are all these knock-on tax, financial
system, payroll, people, talent issues that need to be addressed as well.”
CFOs need to consider “a whole host of tax issues,” including exit tax cost and transfer of goodwill, Hillier
said Thursday during an EY webinar. At the same time, companies shifting supply chains might gain benefits
such as tax breaks and funding for employment and training, he said, noting “there’s a lot out there at the
moment that companies can take advantage of.”
https://www.cfodive.com/news/supply-chain-overhaul-brings-benefits-tax-complexity-
ey/617973/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202022-01-
31%20CFO%20Dive%20%5Bissue:39446%5D&utm_term=CFO%20Dive
My work: https://www.slideshare.net/paulyoungcga/what-is-next-for-the-global-economy-january-2022-
251041058

16. Mitigating Climate Change
• Building a resilient supply chain
• Moving to zero-waste
• Adoption of policies related to the circular economy
• Adopting ESG reporting
• Adopting risk and crisis management reporting
• Continue look at ways to better management of water
• Work with insurance providers on how manage insurance costs.
Source - https://www.slideshare.net/paulyoungcga/how-to-mitigate-the-threats-of-climate-change-september-2021and
https://www.slideshare.net/paulyoungcga/introductory-to-esg-and-sustainability-reportingpptx and

17. Industry 4.0
Summary:
Blog - Industry 4.0 - How developing the right Data and AI Strategy can drive Industry 4.0 Adoption -
https://www.linkedin.com/posts/paul-young-055632b_how-ai-serves-as-a-cornerstone-of-industry-activity-
7040966031330217984-K4fb?utm_source=share&utm_medium=member_desktop

18. Summary
• USA manufacturing will continue to face many challenges
Blog – United States Manufacturing Sector Analysis and Commentary – March 2023
Summary:
U.S. manufacturing-sector orders fell again in February
, driven again by a decline in transportation
equipment and manufactured durable goods orders, albeit at a slower pace than in January.
New orders for manufactured goods fell 0.7% in February on month to $536.4 billion, compared with a
revised 2.1% fall in January
, data from the Commerce Department showed Tuesday.
The reading is a touch weaker than the 0.6% decrease expected by economists in a poll by The Wall
Street Journal.
The fall was driven by a 2.8% drop in orders for transportation equipment, the data showed. Nondefense
aircraft and parts orders once again dropped, by 6.6% in February, after a 56.3% dip in January, although
the figures came after a hefty rise at the end of 2022. Even excluding transportation, total orders still fell
0.3%, a swing from a 0.8% rise in January.
New orders for manufactured durable goods--those meant to last at least three years--fell 1.0% in
February, in line with preliminary estimate and after a 5.0% increase in December
. New orders for
manufactured nondurable goods tumbled 0.4%.
Surveys to manufacturers suggest that despite recent moderation of the fall in orders, the pace of
declines could accelerate again.
ISM purchasing managers index showed Monday that new orders at U.S. manufacturers contracted again
in March, reaching its lowest level since May 2020.
Source - https://www.marketscreener
.com/news/latest/U-S-Factory-Orders-Fell-Again-in-February-
Though-at-Slower-Pace--43426768/